Workforce shortages impact restaurants differently

Saturday

With Ottawa County's June unemployment rate coming in at a very low 3.1 percent, local companies are being forced to go to great lengths to maintain proper staffing levels.

While struggles to find enough employees in manufacturing and trucking have been well documented, there is also a significant shortage of workers in the food industry.

In a recent survey by the Michigan Restaurant Association (MRA), 61 percent of restaurant operators said the biggest challenge they face is workforce shortages.

There are a number of factors that come into play, with restaurants at different price levels and locations feeling the effects of the employee shortage differently.

The restaurant industry clearly plays a huge role in the state and national economy.

When looking at data from the National Restaurant Association and the MRA, there were 16,198 eating and drinking establshments in Michigan in 2016, and state restaurants had close to $16 billion in sales in 2017. Restaurant and food service jobs are expected to total 440,600 in 2018 — making up about 10 percent of total employment in the state.

At the national level, it is estimated that there are more than 1 million restaurants and drinking establishments that have about $800 billion in annual sales — about four percent of the United States GDP. The industry employs about 15.1 million people.

In the Holland-Zeeland area, the need for restaurant employees continues to be a challenge as the economy booms and more jobs become available.

According to Jane Clark, president of the Michigan West Coast Chamber of Commerce, the hospitality industry plays a critical role in the local economy. As more restaurants and hotels are needed to meet tourism needs, many restaurants are finding it "increasingly difficult to recruit staff," she said.

New strategies are needed to meet the challenge, Clark said.

"We meet regularly with members along the bustling U.S.-31 corridor, and restaurants report needing to pull in employees from out of town to fill their staff vacancies," Clark said. "For these hourly restaurant workers, the cost of gas to commute into Holland can be enough to not make it worth their time.

"Manpower reports that upskilling and reskilling alternate talent sources needs to be part of the strategy for employers looking for solutions, and we are invested in helping our businesses explore such innovative strategies for finding talent."

Several local restaurant owners and managers say they are keeping up with staffing needs, although they remain concerned about the future as the economy continues to boom.

At 1983 Restaurants, which includes two eateries - Zeeland's Public and Holland's Seventy-Six - finding and keeping staff has not caused too many issues.

Krista Shoemaker, the dining room manager for the two restaurants, said it's really been a matter of having too many applications to process.

"We have not had much trouble," Shoemaker said. "I think being the new kid on the block, and we are rolling in so many guests and doing such good business, that we are the place that people want to be. I am, however, concerned about the future and all the new businesses that are coming in."

While Shoemaker said the two restaurants are not currently hiring, they still get a steady supply of resumes and applications.

"I get applications almost every day," she said. "I get some kind of email or someone stopping in with a resume, and I just have to tell them that they are welcome to drop off their resume. I do have a folder that says 'possible future employees' and when I do need someone I go back and go through those."

At 8th Street Grille in downtown Holland, co-owner Andrew Westerlund said the restaurant has been fortunate to have a steady supply of people coming in to apply for jobs.

"We have been having a lot of people come in looking for positions, and we are currently at a place where we are still looking to build our crew," Westerlund said.

One advantage for the 8th Street Grille is that it's a family-run business, which means that if there's a job to fill, a family member can take it if necessary. Whether it is washing dishes, working on the line or tackling other tasks, Westerlund said he has probably done it.

"We feel very fortunate that we have so much family involved, which has made it a lot easier to fill the vacant spots," he said. "We have really been able to get the right people in the right places. Another thing that is nice is that it isn't an enormous restaurant, so it is a bit more manageable."

One factor that helps ease workforce issues in the Holland area is the revolving door of avaiable students.

As the high school academic year comes to a close, the labor market sees an influx of students looking for entry-level restaurant positions. Then in late summer, when those students are going back to school, Hope College students are flooding the area looking for employment for the school year.

"We have already begun to fill the spots left by students because that is just part of the business," Westerlund said. "In the industry, you have people who go to school and then come back. Our kitchen has definitely been the more consistent side. We do have servers who have been here for a long time, but you have a few here and there that leave and you just have to deal with it."

For restaurant managers, the best way to combat workforce shortages is to retain the employees they have. For Shoemaker, that means maintaining communication with staff and ensuring that each employee is taken care of the right way.

While restaurants in the area have been getting by for the time being, new competition for employees is on the way. Som managers wonder what's going to happen when new restaurants like HopCat open in Holland in early 2019. The bar and restaurant is expected to seat 250 people, with outdoor seating accommodating another 70.

The business plans to hire about 100 full-time and part-time employees starting in late 2018. BarFly Ventures, the parent company of HopCat, could not be reached for comment in time for publication.

— Follow this reporter on Twitter @SentinelAustin or @BizHolland.

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